By Timothy S. Donahue
Top Takeaways:
- New vape tax arrives Oct. 1: The UK’s Vaping Products Duty will apply to all vaping liquids, whether or not they contain nicotine.
- Northern Ireland exception remains: Different duty-free rules will continue to apply in Northern Ireland.
- Government revenue set to climb: UK vape-duty receipts are projected to increase from £135 million in 2026-27 to £565 million by 2030-31.
United Kingdom’s new Vaping Products Duty (VPD) is set to take effect on Oct. 1, creating a new tax regime for vaping liquids and generating hundreds of millions of pounds in additional government revenue over the next five years.
Under the new system, all vaping liquids sold in the UK will be subject to the duty, regardless of whether they contain nicotine. Government projections indicate vape-duty revenues will rise from £135 million ($181 million) in fiscal year 2026-27 to £565 million ($759 million) by 2030-31.
The rollout will also introduce new duty-free allowances for travelers entering Great Britain. According to guidance issued by HM Revenue & Customs (HMRC), passengers aged 17 or older may bring up to 50 milliliters of vaping liquid into Great Britain for personal use without paying VPD.
“If an individual brings more than 50ml of vaping liquid into Great Britain, they must declare the goods and pay VPD on the full quantity, not just the amount above the allowance,” HMRC said in guidance sent to industry stakeholders.
Passengers will be able to declare products online before arrival or at ports and airports with declaration facilities. The changes are expected to affect duty-free retailers serving UK-bound travelers, particularly those selling vaping products. With lower duty-free allowances, retailers could see smaller basket sizes and may need to adjust product assortments and stock-keeping units.
Northern Ireland Keeps Different Rules
While the new duty will apply throughout the UK, Northern Ireland will continue to operate under a different set of traveler rules because of its unique trading relationship with the European Union.
For travelers arriving directly in Northern Ireland from non-EU countries, vaping products will continue to fall under the broader “other goods” allowance, currently valued at £390 ($524) or £270 ($363) for those arriving by private aircraft or boat. More significantly, travelers arriving directly in Northern Ireland from EU countries may continue to bring vaping liquids into the UK without paying duty or making a declaration, provided the products are for personal use and not for resale.
The differing rules could cause confusion among travelers and retailers as the new tax system takes effect. HMRC acknowledged the issue in its communication with stakeholders, stating that “clear passenger messaging would help reduce avoidable non-compliance at the border.”
The agency also emphasized that personal allowances do not apply to products imported for commercial use.
The government’s revenue projections suggest vaping taxes will become an increasingly significant source of excise revenue over the coming years. By 2030-31, projected vape-duty collections will be more than four times higher than expected receipts during the first year of implementation.
